Silver dealers in Singapore scramble for stock amid soaring prices, buying frenzy

“For us dealers, we are not doing a lot of marketing. People are searching for us to buy physical metals,” said Mr Kwek, owner of Singapore-based startup Metal & Picks.

He added that the profile of buyers is also beginning to shift.

Once dominated by mostly local and middle-aged customers, the heartland shop in Upper Boon Keng is now seeing younger buyers in their 20s – and even foreigners – snapping up silver bullion.

That shift is partly driven by larger dealers running low on stock, pushing buyers to look elsewhere.

Mr Kwek said about nine in 10 of his customers now opt for silver over gold, despite its greater volatility. 

“The demand for physical (silver) is crazy,” added Mr Kwek, who has raised profit margins on silver products and placed larger orders.

“Some (refineries), even when we send in orders, say that they don’t dare to take in orders. So right now we are on a waitlist.”

The retailer said it placed an order for about 300 pieces of 1kg silver bars last month, but has since been told the stock is only expected to arrive in March.

That is a sharp slowdown from earlier periods, when orders typically took just one to two weeks to arrive.

To cope, dealers told CNA they are placing larger orders and expanding online sales channels, as more buyers turn to digital platforms to secure bullion quickly.